Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
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Long-term Activity Ratios (Summary)
Altria Group Inc., long-term (investment) activity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The financial data reveals several trends in operational efficiency and asset utilization over the five-year period ending December 31, 2023.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates an overall increasing pattern from 12.56 in 2019 to a peak of 16.75 in 2021. This suggests improving efficiency in generating revenue from net fixed assets during this period. However, a slight decline is observed in subsequent years, with the ratio dropping to 15.61 in 2022 and further to 14.82 in 2023. Despite the decline, turnover remains significantly higher than the 2019 level, indicating sustained enhanced asset utilization relative to the start of the period.
- Total Asset Turnover
- The total asset turnover ratio shows a consistent upward trend from 0.51 in 2019 to 0.68 in 2022, which reflects a steady improvement in the company’s ability to generate sales from its total asset base. In 2023, the ratio decreases slightly to 0.63 but maintains a level above the initial 2019 figure. This minor decline may indicate some moderation in asset efficiency, yet the overall growth across the period points to enhanced asset productivity.
- Equity Turnover
- Equity turnover presents data only for the first two years, with a marked increase from 4.04 in 2019 to 9.21 in 2020. The absence of data for subsequent years limits trend analysis, but the sharp rise in 2020 may reflect changes in equity management or capital structure impacting revenue generation relative to shareholder equity during that year.
In summary, the company exhibits improved asset utilization over the reviewed term, with notable gains in turnover metrics related to fixed and total assets. The peak in net fixed asset turnover in 2021 and steady gains in total asset turnover until 2022 highlight enhanced efficiency in generating sales. Although minor declines are seen in the most recent year, performance ratios remain above initial levels, suggesting a generally positive trajectory in operational effectiveness. The incomplete equity turnover data prevents a full assessment, but the available figures indicate increased efficiency in equity usage in 2020.
Net Fixed Asset Turnover
Altria Group Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net fixed asset turnover = Net revenues ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net Revenues
-
Net revenues exhibited a modest increase from 25,110 million US dollars in 2019 to a peak of 26,153 million US dollars in 2020. Subsequently, revenues experienced a gradual decline over the following three years, decreasing to 24,483 million US dollars by the end of 2023. This pattern suggests a peak during 2020, followed by a slow but steady reduction in total revenues through 2023.
- Property, Plant and Equipment, Net
-
The net value of property, plant, and equipment remained relatively stable around the 2,000 million US dollars mark from 2019 to 2020, before declining sharply to 1,553 million US dollars in 2021. After this decrease, a gradual recovery trend is observed, with values increasing to 1,608 million US dollars in 2022 and further to 1,652 million US dollars in 2023. This indicates a significant reduction in fixed assets in 2021, with partial reinvestment or appreciation thereafter.
- Net Fixed Asset Turnover
-
The net fixed asset turnover ratio showed an upward trajectory from 12.56 in 2019 to a peak of 16.75 in 2021, reflecting improved efficiency in generating revenues from fixed assets. However, this ratio declined somewhat in subsequent years, moving to 15.61 in 2022 and 14.82 in 2023, although it remained above the initial 2019 level. This trend corresponds inversely with the fluctuations in net fixed assets, indicating a possible optimization of asset utilization during periods of reduced asset base and a slight easing in efficiency following asset recovery.
Total Asset Turnover
Altria Group Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Total Asset Turnover, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Total asset turnover = Net revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues exhibited a slight fluctuation over the five-year period, peaking at 26,153 million USD in 2020. Following this peak, there was a gradual decline in revenues, reaching 24,483 million USD by the end of 2023. This indicates a downward trend in sales or revenue-generating activities after 2020.
- Total Assets
- Total assets decreased consistently from 49,271 million USD in 2019 to 38,570 million USD in 2023. The most significant reduction occurred between 2020 and 2021, suggesting asset divestitures, depreciation, or other adjustments reducing the asset base substantially during this period.
- Total Asset Turnover
- Total asset turnover showed an overall positive trend, increasing from 0.51 in 2019 to a peak of 0.68 in 2022. This indicates improved efficiency in generating revenues from the asset base. However, in 2023, the ratio declined slightly to 0.63, though it remained higher than the initial years, signaling a generally enhanced but slightly weakened asset utilization in the most recent year.
Equity Turnover
Altria Group Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Stockholders’ equity (deficit) attributable to Altria | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Equity Turnover, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Equity turnover = Net revenues ÷ Stockholders’ equity (deficit) attributable to Altria
= ÷ =
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues demonstrated a fluctuating downward trend over the five-year period. Starting at $25,110 million in 2019, revenues increased marginally to $26,153 million in 2020, followed by a slight decrease to $26,013 million in 2021. Thereafter, a more pronounced decline is observed with revenues decreasing to $25,096 million in 2022 and further to $24,483 million in 2023. This decline suggests potential challenges in generating sales or shifts in market conditions affecting revenue streams.
- Stockholders’ Equity (Deficit) Attributable to Altria
- Stockholders' equity showed a significant and concerning negative trend over the period. Beginning at a positive $6,222 million in 2019, equity fell sharply to $2,839 million in 2020. The equity position then transitioned into a deficit starting in 2021 with a negative $1,606 million, continuing to deteriorate to negative $3,973 million in 2022 and remaining substantially negative at negative $3,540 million in 2023. This trend indicates ongoing net losses, asset write-downs, or significant liabilities exceeding assets, undermining net asset value and potentially raising solvency concerns.
- Equity Turnover
- The equity turnover ratio, which measures net revenues relative to stockholders’ equity, increased markedly from 4.04 in 2019 to 9.21 in 2020, reflecting increased efficiency or a higher revenue generation relative to equity. However, data for 2021 and subsequent years is missing, possibly due to the transition into negative equity, which would render the ratio less meaningful or undefined. The initial increase followed by the absence of data aligns with the significant decline in equity observed.